From Glossy to Gritty: Why User Generated Content (UGC) is Outshining Influencers in Marketing

Does using influencer marketing even work anymore?

As a marketing agency we get that question a lot these days…

It’s working a lot less than it did. A 2024 study found that while influencer campaigns are increasing in number, their ability to capture attention and influence purchasing decisions is diminishing due to oversaturation and lack of distinct storytelling. But that doesn’t mean getting content from “real people” (not paid actors) isn’t an important method of marketing your business. In comes User Generated Content, or UGC.

What is UGC?

UGC refers to any content—text, images, videos, reviews, or social media posts—created by users rather than the brand itself. This form of content has proven to be a powerful tool for businesses looking to build trust, foster community, and drive engagement.

User-generated content isn’t a new concept—brands have been leveraging customer testimonials, reviews, and community-driven campaigns for decades, but digital platforms like social media have supercharged its reach and impact in modern marketing strategies.

What’s the Difference Between UGC and Influencers?

While both influencers and UGC can play significant roles in marketing, they serve different purposes and come from distinct sources.

Influencer marketing involves partnering with individuals who have large followings and significant influence over their audience to promote a product or service. This strategy often entails paid collaborations and carefully curated content.

UGC, on the other hand, is created organically by everyday users who have genuine interactions with a brand. UGC tends to be more authentic and relatable, as it reflects the real experiences of customers rather than promotional partnerships. Both approaches can be powerful, but UGC offers a unique way to build trust and foster community through genuine customer advocacy.

Why UGC Matters

The appeal of UGC lies in its authenticity. Unlike branded content, which can sometimes feel overly polished or scripted, UGC comes directly from real people who have genuine experiences with a product or service. This authenticity resonates with consumers, particularly millennials and Gen Z, who value transparency and trust in the brands they support.

A study by Nielsen found that 92% of consumers trust recommendations from friends and family over advertising. Similarly, research by Stackla revealed that 79% of people say UGC highly impacts their purchasing decisions. These statistics highlight why UGC is such a powerful tool for marketers.

Benefits of UGC

1. Builds Authenticity and Trust: Customers are more likely to believe testimonials from peers rather than promotional messages from the brand.
2. Boosts Engagement: UGC campaigns encourage customers to share their experiences, which can lead to higher interaction rates on social media and other platforms.
3. Cost-Effective Content: Instead of producing every piece of content in-house, brands can leverage their customers’ creativity to diversify their marketing materials.
4. Encourages Community Building: By showcasing customer contributions, brands can foster a sense of belonging and loyalty within their audience.

Successful Examples of UGC

Starbucks’ #RedCupContest

Starbucks’ annual #RedCupContest invites customers to share creative photos of their holiday-themed cups. This campaign generates thousands of submissions every year, boosting brand visibility and engagement during the holiday season.

GoPro’s Adventure Videos

GoPro frequently shares videos created by its customers, showcasing thrilling adventures captured with their cameras. This strategy not only demonstrates the product’s capabilities but also builds a community of loyal users.

Airbnb’s Guest Stories

Airbnb’s marketing heavily relies on UGC, featuring stories and images from guests who’ve stayed in unique locations. These authentic testimonials give potential customers a glimpse into the real experiences they could have.

How to Encourage UGC

1. If you’re looking to integrate UGC into your marketing strategy, here are some steps to get started:
2. Create a Hashtag Campaign: Encourage users to share their content using a branded hashtag. Host Contests or Challenges: Offer incentives for users to share content, such as discounts, free products, or exclusive perks.
3. Feature Customers on Your Platforms: Highlight user contributions on your website, social media, or email campaigns to show appreciation and inspire others to participate.
4. Ask for Reviews and Testimonials: Prompt satisfied customers to share their experiences on review platforms or your website.

Ethical Considerations

While UGC can be incredibly beneficial, brands must handle it with care. Always seek permission before sharing a customer’s content, and give credit where it’s due. Additionally, ensure that any incentivized UGC complies with disclosure guidelines, such as the Federal Trade Commission’s (FTC) rules on endorsements and testimonials.

Final Thoughts

User-generated content is more than just a trend; it’s a testament to the power of community in marketing. By tapping into the creativity and authenticity of your audience, you can build deeper connections and create a brand that people genuinely want to support. As UGC continues to shape the future of marketing, the brands that embrace it will stand out in a crowded digital landscape.